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CRITICAL PATH STRATEGIES, IN

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www.criticalpathstrategies.com

Pipeline Managemen


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Pipeline Managemen

A successful pipeline management process not only improves sales velocity

and performance. It also helps sales teams communicate, select the right op-

portunities to work on, enhance account strategy, and allocate resources for

maximum effectiveness.

Inde

White Paper: Best Practices in Pipeline Management .......................1-26

Trust Your Pipeline ............................................................................27-28

Visit CPS online . . . www.criticalpathstrategies.com

Join our L inkedIn Group . . . The Best Best Practices in Sales Effectiveness

ABOUT CPS. Critical Path Strategies

helps clients improve the effectiveness

of their sales organization. Our portfolio

of services addresses the strategic,

organizational, and relationship issues

that impact selling performance. Our

powerful processes enable clients to

transform their sales culture, enhancetheir competitive position, and accom-

plish strategic business initiatives. Our

clientsemerging companies and

members of the Fortune 500 alike

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WHITE PAPER: BEST PRACTICES IN PIPELINE MANAGEMENT

www.criticalpathstrategies.c

2005 by Critical Path Strategies,Inc. All Rights Reserv

December 2005

RESEARCHSTUDYBY:

Filigree Consultingwww.filigreeconsulting.com

Best Practices in Pipeline Management

A consulting practice of Critical Path Strategies, Inc.

CPS WHITE PAPER

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Abstract

This paper describes the current state of the

art and best practices in Pipeline Manage-

ment. It is based on a study of twenty-one

organizations in North America, completed in

the third quarter of 2005.

According to the participants, the tangible

benefits of pipeline management are: to opti-

mize resource allocation, improve opportunity

selection and focus, reduce sales cycle time,

facilitate strategy, and drive revenue growth

and profitability. Unfortunately, only a few

participants, have attained these goals. Satis-

faction with pipeline management is generally

low, and improvement projects rampant.Pipelines are not trusted.

Pipeline management is a blend of process,

technology, strategy, and people intended to

improve the yield on sales and marketing

investments by structuring deliberate interac-

tions that drive the quantity, quality, and ve-

locity of selling opportunities. A strategy to

achieve outstanding pipeline management

outcomes, developed by Critical Path Strate-

gies, was presented to the participants for

their comments and input, and is reviewed in

this paper.

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Scope of Study 4

Executive Summary 5

Study Introduction 6

Key Hypotheses 7

Key Findings 8-9

Detailed Findings 10-23

Trusted Pipeline: A Rarity?10

Satisfaction with Pipeline Management: Not! 11

Pipeline Management Vision 12

Value of Pipeline Management Information 13-14

Best Practices Model 15

Pipeline Management Inhibitors 16-17

Pipeline Management Maturity 17

Performance Groups 18-19

Maturity Progression 19

Critical Path StrategiesPipeline Management 20-22

ConclusionsLeader Best Practices 23-24

Study Demographics 25

About Critical Path Strategies 26

About Filigree Consulting 26

Table of Contents

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Scope of StudyScope

21 high-level interviews

Participants

Product and service company executives

with quota-bearing or revenue objectives.

The participants were generally from tech-

nology and service companies, and repre-

sented a broad distribution of revenue

sizes. Within their specific span of control,

the participants were engaged in manag-

ing from under 25 to over 500 directsales representatives, and supported or

managed businesses from less than

$250 million to more than $5 billion in

revenue. The participants represented

general management (24%), sales man-

agement (67%), and marketing (9%).

Partial List of Participants

Acxiom Corporation

ARCADIS N.V.

Avnet, Inc.

Bell Microproducts

Caterpillar Logistics Services, Inc.

ChoicePoint, Inc.

EMCOR Group, Inc.

GE Healthcare

IBM.com Americas

Industrial and Financial Systems, IFS

AB

Microsoft Business Solutions

National Oilwell Varco, Inc.

Sun Microsystems, Inc.

Symon Communications, Inc.

Technip USA Corporation

TeleTech Holdings, Inc.

TELUS Corporation

Vignette Corporation

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Overview

Executive Summary

In a third quarter 2005 study, many gen-eral managers and sales and marketing

executives told us that they did not have

confidence in their revenue pipelines.

And while a quarter of the study partici-

pants were satisfied with their pipeline

management process and execution,

almost all of that group and over 80% of

the total group of participants, were en-

gaged in an improvement project.

The leading performers recognize their

revenue pipeline as a business asset,

and broadly value their pipeline informa-

tion. Their pipeline management proc-

esses are detailed, rigorous, and sup-

ported by effective automation. They have

focused on disciplined execution and

have made pipeline management part of

their management rhythm. Most impor-

tantly, they drive tangible business re-

sults via effective pipeline management.

They have experienced improved profits,

grown revenue, penetrated accounts

more effectively, improved alignment with

customers, and increased stockholder

confidence. Not only do they provide ex-

amples of best practices, they clearly

attribute business results to having imple-

mented them.

Managing the revenue pipeline in a com-

prehensive and aggressive manner sim-

ply makes good business sense. The con-

sistency and quality of an organizations

revenue pipeline should clearly be an

item of paramount focus.

Pipeline management is a blend of proc-

ess, technology, strategy, and people

intended to improve the yield on sales

and marketing investments by structuring

deliberate interactions that drive the

quantity, quality, and velocity of selling

opportunities. Effective pipeline manage-

ment provides information useful to the

overall business as a basis for forecast-

ing, resource allocation, and just-in-time

sales coaching and has spillover benefits

in defining required inventory levels and

engagement resource requirements. In

general, the participants in this study

were positively convinced that optimized

pipeline management would help them

achieve greater profitability, increase

revenues, and improve alignment with

customer needs.

The participants in the study provided

significant insight into the state of the art,

key issues and inhibitors, potential andrealized benefits, and best practices. One

of their key observations is that it all

starts with leadership. Organizations with

nascent pipeline management generally

begin their improvement processes with a

focus on helping their leadership team

realize the need to improve. After that,

they focus on developing a pipeline man-

agement strategy, addressing overall

cultural issues, and striving to gain con-

trol of their pipelines. They then seek to

optimize and integrate processes andtools. Their initial efforts are broad and

sweeping. These initial projects generally

contribute positively to business results in

terms of revenue, profit, and customer

satisfaction. Balanced performance,

where process, technology, strategy, and

people combine to provide pipeline man-

agement that delivers extraordinary busi-

ness results, is a matter of incremental

improvements.

As organizations progress on the journey

from nascent pipeline management to

high performance, the pipeline becomes

increasingly valuable, and tangible bene-

fits are achieved. Sales velocity is im-

proved. Resource allocation is optimized.

Alignment with customer needs positively

impacts customer value. Revenue grows,

profit increases, and shareholder confi-

dence is strengthened.

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In the third quarter of 2005, Critical Path

Strategies and Filigree Consulting con-

ducted a study intended to identify current

practices, benefits, and the key elements of

pipeline management. Twenty-one general

management, sales, and marketing execu-

tives contributed to the project via an in-

depth interview of one to two hours.

During the interview, we collected informa-

tion on the participants role in pipeline

management, demographics about the

portion of business they were responsible

for, the status and plans for their pipeline

management processes, and their percep-tions of benefits, inhibitors, and best prac-

tices for pipeline management.

Study Introduction

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Key Hypotheses

To begin the study process, we formu-

lated a set of hypotheses regarding pipe-

line management. As is typical in such

studies, some were confirmed absolutely,

some to a certain extent, and some were

rejected. We appreciate the participation,

forthright input, and advice of our distin-

guished participants. The table below

outlines some of the more interesting

hypotheses and what we learned about

them.

We will delve into these and other impor-

tant lessons learned during the study in

the remaining body of this paper. Based

on our findings, we must conclude that

pipeline management is an important

business discipline that has solid and

tangible business results, and that most

organizations have a long way to go to

achieve them.

Initial Hypothesis What We LearnedEffective pipeline managementleads to consistent sales perform-ance that meets or exceeds expecta-tions. Its greatest benefit is in im-

proving the predictability of revenue.

While our participants agreed that their pipeline management efforts improved theirsales velocity and performance, they saw the largest benefits of pipeline managementas: a means of communication, selecting the right opportunities to work on, enhancingstrategy, and providing for more effective resource allocation. While these all wouldeventually drive a more predictable process and results, we find the specific underlying

drivers of predictability and velocity very informative.

Two key vectors of pipeline manage-ment effectiveness are process and

discipline.

While there was little disagreement from the participants on the importance of processand discipline, we learned that strategy and especially technology have huge impact on

the effectiveness of pipeline management.

The right level of sales and salessupport resources are clearly under-stood for each opportunity and allo-

cated for maximum effectiveness(and profitability).

Resoundingly, our participants saw resource allocation (in two formsthe right trans-

actions and the right resources) as the key benefit of advanced pipeline management.

In general, most sales organizationsdo not trust their pipelines, and aredissatisfied with their pipeline man-

agement process and discipline.

This appears generally to be true based on the input from our participants. Dissatisfac-tion is common, improvement programs even more common. Even a few of the top

performers have programs for incremental improvement.

Most of our participants demonstrated evidence of distrust of pipeline data. Its gener-ally disconnected from forecasts, suffers from relatively low use, is not clearly valued,

and was described (quite a few times) as fluffespecially in the early sales cycle.

Of course, there are notable exceptions and clear signals that it should be better.

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1. Revenue Pipelines: Not trustedDo I trust my pipeline? Sure, but not

the data, was a common theme

expressed by our participants. While

not everyone interviewed agreed, the

lack of control of input, lack of stan-

dards, cultural impacts, and lack of

sales skills in recognizing a real

opportunity were frequently cited as

the culprits.

Most of the time, pipeline trust was

based on personal knowledge of

transactions or sales teams. I ad-

just team X down by 15% and team Y

up by 20% and get to a fairly consis-

tent forecast. Conversely, top per-

formers not only trust their pipelines

but they consistently link the infor-

mation into their forecasting proc-

esses.

2. State of pipeline management:Dissatisfied"Have you talked to any sales execu-

tive who's satisfied with his or her

pipeline management?" While in fact

we did, it was not common, with over75% noting dissatisfaction with their

pipeline management process or

discipline. Even more telling is that

over 80% of the participants were

engaged in some active improve-

ment initiative, with many engaged in

sweeping reforms and a few at the

extreme of re-building the entire

process and discipline.

3. Pipeline management: An importantbusiness discipline with broad busi-ness benefits.When participants where asked to

describe the potential business

benefits of effective pipeline man-

agement, they described a broad set

of benefits. A top-line view of their

responses suggests a general con-

sensus on the potential for pipeline

management to improve profitability

and grow revenues. The specifics

defining howthese benefits will be

achieved are focused on resource

allocation, opportunity selection and

focus, and improvements in strategy

based on information.

4. The business value of pipeline man-agement information: Consistencyand differencesIn general, the participants high-

lighted the value of pipeline manage-

ment information to the sales organi-zation as a basis for communica-

tions, coaching, opportunity manage-

ment, and strategy alignment and

development. All of these uses were

driving at the goal of increasing sales

velocity by defining the best actions

the team could take at any moment

in time.

Outside the sales organization, pipe-

line management information was

often used by marketing, develop-

ment, supply chain management,and delivery organizations. While

there are clear differences among

organizations (primarily based on

their commitment and pipeline man-

agement process maturity), a key

difference in the perceived business

value of pipeline management infor-

mation is apparent between profes-

sional/consulting service organiza-

tions and product organizations.

5. Effective pipeline management re-quirement: Strategy, people, process,and technologyWhile at its core pipeline manage-

ment is an information process with

the primary purpose of enhancing

decision-making, it is dependent on

people and enabling technology. The

Key Findings

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correct balance of strategy, people,

process, and technology is a key

requirement in creating an effective

pipeline management system.

6. Inhibitors to effective pipeline man-agement: Tools and tool integrationThe most frequently named inhibitors

to achieving an optimized state of

pipeline management were the pipe-

line tools and tool integration (44%

of respondents), and integration with

other business processes (44%).

Issues with the tool set were broadly

distributed across pipeline manage-ment maturity levels, with the most

experienced organizations looking for

enhancements and integration and

the least mature seeking an initial

toolset. The recognition that integra-

tion with other business processes in

an inhibitor reflects the idea that

optimization of pipeline management

is dependent on cross-organizational

involvement.

7. The state of the art of pipeline man-agement: Diverse and evenly distrib-utedIn general, respondents averaged at

close to the midpoint of the maturity

scale we developed from the inter-

view process. About one-third of the

respondents were in a very low level

of development with undocumented,

unpredictable, and ad hoc pipeline

management approaches. Another

29% were in a moderate state of

development with some elements of

control and defined processes. The

top performers were split between

those in a proactive state of maturity

(24%) and the most mature organiza-

tions (14%), which had pipeline man-

agement processes that contributed

extremely strong value to their over-

all businesses.

8. Some participants pipeline manage-ment approaches would benefit fromadditional process sophisticationincluding formalization of recom-mended actions across the buyingprocess.Participants reviewed the Critical

Path Strategies two-dimensional

model for pipeline management, and

provided valuable input to its applica-

bility and use. The model, called all-

wheel traction pipeline manage-ment, describes the specific facets of

multi-level selling across the buying

cycle. While most participants agreed

with the value of the approach, sev-

eral commented on the need for

simplification, additional integration,

and flexibility in the selling process.

In general, very few of the partici-

pants had the implied level of pipe-

line management sophistication in

place.

Key Findings

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Forecast Accuracy and PipelineManagement Information Use

Organizations that provide highly cus-

tomized or professional-service-oriented solutions tend to connect

their pipelines more directly with their

forecast than product companies.

Net: Trusted pipelines and linkage to the

organizations forecasting approach do

appear to be an important factor revenue

predictability.

Trusted Pipelines: A Rarity?

Pipeline information rarely (if ever) is the

sole source of forecasting information.

While we do not believe it should be the

only input, only one-third of our partici-

pants directly link pipeline data to fore-

casts.

All participants who were involved in fore-

casting revenue indicated that they

generally made or always made their

forecasts. However, the reasons organiza-

tions always made their forecasts often

had little to do with pipeline manage-mentlarge recurring revenue streams or

sandbagging were mentioned several

times.

While we found that about one-third of

the organizations involved made a direct

connection between their pipeline infor-

mation and their forecasts, another third

described it as input that was only indi-

rectly used, and another third as not

used at all.

Examples of sales executives applying

their own estimation techniques were

frequent, and early sales cycle transac-

tions were commonly categorized as

fluffy.

While our study was not rigorous from a

quantification perspective, we did identify

a strong relationship between forecast

accuracy and the use of pipeline informa-

tion.

Organizations that directly linked their

pipeline data to forecasts say thatthey always meet their forecasts.

Organizations that say they generally

meet their forecasts either connect

pipeline management information

indirectly or not at all.

Detailed Findings

Use of Pipeline Information

Frequency of Meeting ForecastsAlways Meet57%

Dont Forecast5%

Generally Meet38%

Use of Pipeline Information in ForecastingPipeline DataUsed Directly29%

Pipeline DataIgnored

29%

Pipeline DataUsed Indirectly

42%

0%

5%

10%

15%

20%

25%

30%

Always Meet Generally Meet

Frequency of Meeting Forecast

Directly

Indirectly

Not Connected

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Satisfaction with Pipeline Manage-

ment: Not!

Indications of lack of trust also show up

in the participants satisfaction with pipe-

line management, and in their willingness

to expend resources on corrective action.

Even a few of the satisfied participants

are engaged in improvement projects.

This indicates that the response to the

question, Are we there yet? is almost

always No.

Thus it is not surprising that most partici-

pants who mentioned their recent suc-cesses also described the work they had

left to do. They seemed to recognize that

pipeline management was an ongoing

journey.

And while pipeline management was not

a priority for a couple of participants,

only one participant believed that they

may have gone too far, and needed to

reassess their processes, workload impli-

cations, and impacts on sales representa-

tives time.

A few in new positions in companies, or

positions without much prior focus on

pipeline management, will make major

investments:

One credits a focus on sales process

and pipeline management as why I

got the job.

Another will focus on lessons learned

by other company divisions as theyaggressively implement, and has a

financial mandate to do it.

Most of the incremental projects are fo-

cused on tools and tool integration, with

some others focusing on process stream-

lining and refining processes.

Indeed we are not there yet.

Detailed Findings

Satisfaction with Pipeline ManagementDissatisfied withBoth Process andDiscipline48%

Dissatisfiedwith Discipline14%

Dissatisfiedwith Process

14%

Satisfiedwith Both

24%

Improvement Projects

IncrementalProject52%

Big Project29%

Not Needed19%

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Pipeline Management Vision

Participants describe their visions of the

impact of optimized pipeline manage-

ment in general terms of increased reve-

nue, reduced costs, and improved profit-

ability. Deeper analysis of the input re-

veals the ways these benefits will be

achieved.

Optimize Resource Allocation, Improve

Focus, and Facilitate Effective Opportu-

nity Selection

As one participant noted: [The main

benefit] would be more business andbetter selection of opportunities to pur-

sue.

Several participants indicated that good

pipeline management would not only

improve the selection of which opportu-

nities to pursue (approximately 25%), but

would also help align resources with se-

lected opportunities (approximately 40%).

In general, pipeline management is seen

as a process and discipline that would

help their organizations focus on doing

the right things with optimal resources.

Organizations that provide highly custom-

ized or professional-service-oriented solu-

tions view optimizing resource allocation

slightly differently than product compa-

nies. For service companies, resource

allocation is about assigning (and in some

cases training) people to deliver services

and solutions. For product companies,

optimizing resource allocation is more

about ensuring that their supply chains

can build the quantity of product neededor that they have sufficient quantities in

inventory for the opportunities in the pipe-

line.

Reduce Sales Cycle Time, Increase Sales

Velocity, and Drive Revenue

Reducing the sales cycle time was a com-

mon theme from several participants. Not

only was pipeline management key in

ensuring that sales activities occurred in

a timely manner, but it provided sales

management with the ability to catchproblems early and provided focus on

stalled opportunities.

Provide Important Input to Strategy

Participants describe this in two different

ways (and some mentioned both). First,

pipeline data provides input to short-term

sales strategy and facilitates coaching.

Second, aggregated (and, in some cases,

historical) data is used as an input to

overall business strategy. Both uses indi-

cate the value of pipeline information as abasis for strategy and decision-making.

One participant noted, The pipeline has

huge impact on planning for the delivery

organization, both in terms of people and

technology resources.

Detailed Findings

Key Elements of Vision

0% 10% 20% 30% 40% 50%

Limit Review Time

Improve Penetration

Increase Customer Satisfaction

Enhance Coaching

Increase Close Rate

Improve Forecast Accuracy

Drive Revenue

Improve Market Information

Reduce Sales Cost

Increase Profit

Improve Focus (Selection)

Reduce Cycle Time, Drive Velocity

Assist with Strategy Formulation

Optimize Resource Utilization

Note: Percentage of Respondents Mentioning(Multiple Responses Collected per Participant)

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Value of Pipeline Management Infor-

mation

Inside the Sales Organization

In general, pipeline management informa-

tion is used to improve communications

within the sales structure to accelerate

sales, make better selection and resource

allocation decisions, and to enable a long-

term view.

Pipeline information provides a basis for

early corrective action regarding revenue

trends and allows sales executives to

take timely action. As one participant putit, uses pipeline information to get a

sense for where the business is short

term relative to making the forecast, and

long term making sure there is enough in

the pipeline to meet objectives down the

road.

Coaching is facilitated by pipeline infor-

mation. Pipeline data is used to inter-

cede and facilitate when needed. It's

through weekly meetings between sales

executives and managers that issues will

come to light.

Regularly scheduled (weekly is most com-

mon) meetings intended to accelerate

sales cycles were held in almost all of the

participants organizations. The key point

that several participants mentioned was

using the meetings to drive action. As one

participant mentioned, The weekly call

lends itself to coaching and education

based on the issues discussed that are

hampering a sale. This tends to occur

when going through open points and ask-

ing what needs to be done to move this

forward? Even among top performers

where just-in-time (ad hoc) coaching was

the primary model of coaching communi-

cations, a weekly meeting occurred. In a

few of the participants organizations

(generally the smaller ones) and at lower

levels, the participants relied on their

personal knowledge of sales opportuni-

ties and transactions to drive communica-

tions.

A common theme in both service and

product companies was using pipeline

data to support opportunity decisions. As

one service company participant noted,

Using it as a basis for weekly approval/

no approval reviews keep the information

current and relevant.

Outside the Sales Structure

Outside the sales structure, pipeline infor-mation is used by some of the partici-

pants organizations to link input to devel-

opment, service delivery, supply chain

management, and marketing.

There were a few cases in which the use

of pipeline information as a basis of de-

velopment was cited. When prompted, a

few participants indicated that the sales

cycle and the development cycle were not

in sync so the pipeline information was

either too early or too late to assist in

most product development efforts. One

marketing executive mentioned that,

[pipeline information] will be used in the

2006 planning process to develop and

assess services and products. Another

described pipeline information as a

means to assess whether a commonly

ordered group of components should be

packaged as a solution. The use of pipe-

line information in supply chain manage-

ment and service delivery management

was significantly different based on the

organizations business model.

Detailed Findings

Primary Uses of PipelineInformationby theTop-to-Bottom Sales Team:

Communications

Coaching

Opportunity Selection

Strategy Alignment

Drive Velocity by Definingand Supporting Action

Primary Uses of PipelineInformationby OrganizationsOutside the Sales Team:

Product Development

Marketing

Supply Chain Management

Service Delivery Manage-ment

Inside the Sales Organization

Outside the Sales Organization

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Differences in Value Based on Business

Model

Differences in the use of pipeline informa-

tion seem strongly related to the degree

of customization of the offering.

Professional/Consultative Service Provid-

ersOrganizations with a high degree of

offer customization

Organizations providing largely custom

solutions rely on the pipeline manage-

ment process as a key resource allocation

tool for delivery resources. During the

conversion from lead to proposal to en-gagement, these firms review pipeline

opportunities to make go/no-go decisions

and assign engagement, assessment,

and site survey or proposal resources.

Due to this important function, pipeline

management data (at the individual op-

portunity level) is often highly visible

across the management team, and

viewed as a critical business asset.

Product ProvidersOrganizations with a

low degree of offer customization

At the other end of the customization

scale, are product providers who sell off-

the-shelf components and manufactured

goods. They use pipeline management

data to ensure that adequate supply ex-

ists in inventory (or is easily acquired) to

meet potential business needs. They link

their pipeline data to inventory and finan-

cial management systems. They attach

high value to pipeline data as a tool to

drive supply chain efficiency, and to jointly

forecast with customers. This often oc-curs under the operational covers and

is generally not visible to senior manage-

ment, except in an aggregated form.

Solutions ProvidersOrganizations with a

moderate degree of offer customization

In the space between the fully custom

and the off-the-shelf providers, a num-

ber of companies in the study were char-

acterized by a combination of both types

of offers, generally integrated (at least to

some extent) in the field. Solutions provid-

ers value pipeline management data as a

sales tool, and for aggregated input into

solution development. Pipeline data is

used to access the optimum packaging

level and the best integration point

(development vs. field) for solutions.

Sophisticated solutions providers inte-

grate the process of ensuing that their

field organizations are aligning solutions

with customer value via their pipeline

reviews and coaching efforts. Thus, solu-

tions providers focus on value alignment

between their customers and the offer

being constructed in the field, and imbed

this in their reviews and processes.

Detailed Findings

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Best Practices Model

Pipeline management is an information

process intended to support decision-

making and drive the most effective best

next actions possible. Pipeline manage-

ment is optimized via a balance of strat-

egy, people, process, and technology.

Strategy

Strategy includes the engagement of top-

level executives in the process and the

use of pipeline information for strategic

purposes. Alignment of pipeline manage-

ment with other business processes andthe overall business strategy is a key best

practice. This requires an environment

where the business value of pipeline

management information is understood,

not only within sales, but also across the

entire business.

People

Pipeline management is people intensive,the value of pipeline information is de-

pendent on consistency of definitions,

use, and execution. Individual sales per-

sonnel must conform to a level of infor-

mation quality that makes the data use-

ful. This requires a focus on culture, skills,

incentives, and accountability. Discipline

in execution is necessary across the man-

agement team and down to the individual

contributor level.

Process

Key elements of best practices from a

process perspective include a process for

review that results in useful (and positive)

feedback and action. Resource allocation

based on pipeline management informa-

tion reinforces the organizations appar-

ent confidence in the process.

Clarity in the linkage between the pipeline

and the sales process (and sales cycle) is

an important process-oriented best prac-

tice. This clarity results is meaningful

coaching, which in turn results in in-

creased sales velocity.

Technology

Technology best practices enable the use

of pipeline information. They include inte-

gration of the technology into day-to-day

operational sales tools and ease of use,

at several levels. Pipeline tools must be

natural extensions of the sales repre-

sentatives workload and workflow. Data

entry must be simple, while enforcing

information quality and consistency stan-

dards. The pipeline management technol-

ogy must encourage the use of the infor-

mation by providing interfaces and tools

for business intelligence, exception re-

porting, and root cause analysis.

Detailed Findings

Pipeline Management Balance

IncreasedRevenues

Profitability

Align withBusinessGoals

Objectives

STRATEGY

PEOPLE

P

R

O

C

E

S

S

T

E

C

H

N

O

L

O

G

Y

AllocateBest

PossibleResources

Skills

Identify BestNext Actions

Enable Visibility Decision-Making

IncreasedRevenues

Profitability

Align withBusinessGoals

Objectives

STRATEGYSTRATEGY

PEOPLEPEOPLE

P

R

O

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O

C

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T

E

C

H

N

O

L

O

G

Y

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C

H

N

O

L

O

G

Y

AllocateBest

PossibleResources

Skills

Identify BestNext Actions

Enable Visibility Decision-Making

-15-


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Pipeline Management Inhibitors

The most frequently mentioned inhibitors

to effective pipeline management were

tools/tool integration (mentioned by 44%

of respondents), and integration with

other business processes (44%). These

were followed by leadership is-

sues (33%), deficiencies within

sales (28% - generally these inhibitors

described skills issues, sales manage-

ment focus, or sales process issues), and

sales resources constraints (22%).

Tools and Tool Integration

A significant amount of discussion during

our interviews was devoted to the pipeline

management toolset. While this ranged

from fairly satisfied to totally broken,

its fair to say that the majority of the par-

ticipants are dissatisfied with their pipe-

line management tools.

In addition to simple dissatisfaction withthe toolset, several participants men-

tioned that the real problem was the lack

of pipeline management integration with

forecasting, account planning, campaign,

lead management, and inventory man-

agement tools.

These comments were more frequently

made by service companies than product

companies.

Integration with other Business Processes

Sales talking to itself is useful in terms

of revenue acceleration, coaching, and

tracking, but to get the maximum value

from a pipeline management system re-

quires multifunctional and cross-

organizational engagement. Several par-

ticipants mentioned that the lack of in-

volvement of the entire business value

creation process (e.g. development, de-

livery, support, marketing) significantly

limits what could be done with their pipe-

line management process. Product com-

panies tended to put more emphasis on

this inhibitor than service companies.

Leadership Issues (and Culture)

Most frequently the leadership issues

described the lack of senior management

involvement and support of the pipeline

initiative. This was generally a lack of

senior management interest in the infor-

mation, and most frequently occurred in

organizations with nascent pipeline man-

agement processes. We suspect that the

engagement of senior management is the

use of pipeline management data re-

quires a certain level of maturity and con-

fidence in the process and information,

and is difficult to achieve until at least a

moderate state of maturity. This, of

course, compounds the effort in achieving

Detailed Findings

Inhibitors

0% 10% 20% 30% 40% 50%

Getting Reps to See Value

Not Integrated into Sales Workflow

Sales Resources

Deficiencies within Sales

Leadership Issues

Tools/Tool Integration

Integration with Other Business Processes

Note: Percentage of Respondents Mentioning(Multiple Responses Collected per Participant)

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high maturity, as the support of senior

management is an important symbol in

fostering the cultural environment neces-

sary to get there.

Generally we grouped issues regarding

culture into the leadership inhibitor as

they were most often expressed as a

leadership or management issue. High-

lighting the importance of maintaining an

effective and non-punitive environment

was pervasive. As one participant said,

Culture is the biggest challenge for our

organization. In some cases, the partici-

pants mention the heritage of their busi-nesses as a significant contributor to

pipeline management success, indicating

that a lack of customer, sales, and mar-

keting focus can be a significant impedi-

ment.

Pipeline Management Maturity

As part of the interview process, we col-

lected a series of data points intended to

diagnose the maturity of the participants

pipeline management approach. We

scored the organizations pipeline matur-

ity on a one-to-five scale (low to high)

based on the following:

Strategy.High maturity indicated bythe recognition of the revenue pipeline

as a business asset. Resource alloca-

tion and opportunity selection is facili-

tated by quality opportunity informa-

tion.

Leadership. High maturity indicated bysenior management support, and the

recognition of pipeline data as valu-

able business information. Pipeline

information trending shows evidence

as instigating efforts external to sales

(e.g. product development, packag-

ing).

Culture. High maturity indicated bycomplete viability of pipeline dataacross all relevant management lay-

ers, without significant filtering. Sales

representatives secure that pipeline

management will not be used in a

punitive manner, and that it repre-

sents an important management tool

that benefits the entire business.

Process. High maturity organizationshave formal processes with clear stew-

ardship. The process is supported by

high-quality automation that enhances

data use and is integrated into the

sales representatives workflow and

the sales cycle. Just-in-time coaching

is facilitated by pipeline information

and accelerates revenue.

Discipline. High maturity is indicatedby consistency, accountability, and a

broadly used metrics system. Fore-

casts based on pipeline data are con-

sistently met. Stakeholder value is

optimized, via revenue velocity, cus-

tomer value alignment, and improvednegotiation strength.

Organization. High maturity is indi-cated by seamless execution without

the requirement for significant staff

support, and minimal impact on sales

representatives workloads.

Overall Results

Overall, the participants organizations

scored at just under the midpoint (2.97)

of the five-point maturity scale. Average

scores for individual sections (i.e. Strat-

egy, Leadership, etc.) were also close to

the midpoint, with Leadership the high at

3.05, and Process the low at 2.66. Inter-

estingly, there was little difference in ma-

turity (on average) for service vs. product

companies.

Detailed Findings

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Performance Groups

Individual organizations were widely dis-

persed with a high score of 4.71 and a

low score of 1.1. The respondents per-

formance fell into four fairly clear groups

as noted below:

Flight School. Seven organizationswith an average overall score of 1.58

on a five scale.

Private Pilots. Six organizations withan average overall score of 2.81 on a

five scale.

Commercial Pilots. Five organizationswith an average score of 3.72 on a

five scale.

Top Guns. Three organizations with anaverage score of 4.62 on a five scale.

Flight School organizations were generallynew to pipeline management as a busi-

ness discipline. Most had active improve-

ment programs in place. This is apparent

from their relatively higher scores in lead-

ership. From this we infer that the firststep in the development of an effective

pipeline manage-

ment approach is

the realization by

management that

it needs to be a

focus initiative. A

few of the partici-

pants in this

group were spe-

cifically brought

in to implementsales process and

discipline.

Private Pilot organizations represent asignificant jump in maturity over the flight

school organizations with a 78% increase

in their overall average score. They are

close to the midpoint of the scale overall

(2.81). Their pipeline management proc-

esses are in control but tend top be reac-

tive in nature.

Most of the Private Pilot organizations

also had improvement programs in place,

but they tended to be less sweeping than

flight school organizations, focused on

incremental improvement in a few key

areas. The most significant improvement

areas between Flight School organiza-

tions and Private Pilot organizations are

Strategy and Culture.

Commercial Pilot organizations representa proactive state of pipeline manage-

ment. They have achieved an overall ma-

turity level of 3.72 on a five scale. Their

pipeline management processes are well-

managed, proactive, and contribute to

their overall business success. Forecasts

are consistently met. Coaching is effective

and accelerates sales velocity.

About half of the Commercial Pilot organi-

zations have improvement programs in

place that are very selective in nature,

often representing things like next gen-eration tools and broader cross-

organization process integration. The

most significant improvement areas be-

tween Private Pilot organizations and

Commercial Pilot organizations are in the

areas of Leadership and Process.

Top Guns represent a world-class state ofmaturity in their pipeline management

approaches. Their pipeline information

adds value to their businesses, broadly

improving decision-making across the

organization. Consistency and stake-

holder value are optimized. They score, on

average, very close to the top of the scale

at 4.62 on a five scale.

Generally the key difference between

Commercial Pilot organizations and Top

Guns is in the area of Discipline. Top

Detailed Findings

MaturityPerformance Groups

1

2

3

4

5

Overall

Strategy

Leadership

Culture

Process

Discipline

Organization

Top Guns (3) Commercial Pilot s (5)

Private Pilot s (6) Flight School (7)

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Guns demonstrate balanced performance

across the maturity model, and have very

specific tuning initiatives in place to

improve their pipeline management.

Maturity Progression

The comparisons between the maturity

groups can give us some insight into how

maturity may progress. While these

groups describe different organizations at

differing levels of development and are

not a longitudinal study of the actual

maturation process in each organization,

they do indicate some tendencies in theprocess.

It appears that it all starts with Leader-

ship. Flight School organizations in a gen-

erally chaotic state relative to pipeline

management maturity begin the progres-

sion by realizing that they need to im-

prove.

The next steps appear to be focused on

Strategy and Culture as organizations

seek to gain control of their pipelines and

move to a more controlled, albeit reactive,

state. This is followed by a focus on Proc-

ess and further engagement of Leader-

ship, moving organizations to a proactive,

controlled state of pipeline maturity. And

finally balanced performance, with a

strong focus on Discipline, leads organiza-

tions to a state of optimized pipeline man-

agement.

Through this progression, pipeline infor-

mation becomes more valuable, and the

contribution of the process to the busi-

ness increases. Sales velocity is im-proved. Resource allocation is optimized.

Just-in-time coaching, and customer align-

ment positively impact customer value.

Detailed Findings

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Critical Path Strategies Pipeline

ManagementAt the end of the interviews we introduced

the Critical Path Strategies (CPS) model

for pipeline management execution. The

CPS model is based on two vectorsthe

sales cycle and a broad set of considera-

tions that positively impact the cus-

tomers buying cycle.

All-Wheel Traction

The TRUST Concept (Technology, Rela-

tionship, Utility, Strategy, and Team) is a

system of considerations that can posi-

tively impact the customers buying cycle.

When applied across the cycle, attention

to these considerations can accelerate

and normalize buying. Buying becomes

a predictable process.

CPS calls this all-wheel traction. At each

stage of the buying cycle a different set of

TRUST actions is defined. This matrix of

actions becomes the basis for reviews,

metrics, and ensuring sales velocity.

TRUST Elements

Technology. The Technical fit of theoffering to the customers environ-

ment

Relationship. Key Relationships thatmust be successfully engaged and

nurtured

Utility. The Utility and subsequentvalue of the offering that enables the

client to implement the solution to

meet their goals

Strategy. The Strategy and tactics theselling team must deploy to create

client-recognized value and the ur-

gency to take action

Team. Enrolling the selling team andpartners to execute the strategy

The chart below is an example of the

types of actions that correspond to the

TRUST concept at different stages of

the selling cycle.

Detailed Findings

Engage full ongoing

support team &

coverage model

Evaluate deal

trade-off & confirm

terms

Initiate project

management &

delivery processes

Confirm

customer & team

understanding of

business utility

Provide customer

analyst examples

Integrate customer

with support &

management team

Update solution

based on

evaluation

Close

Align team &

support flawless

execution of POC or

trial

Understand

potential barriers &

deliver complete

proposal

Engage references

Negotiate

Refine value

proposition for

competitive

differentiation

Complete project

justification

Engage relationship

strategy & action

plan. Focus

communications on

complete under-

standing of decision

criteria

Develop POC or

trialPropose

Gain consensus

from customer on

solution

Focus opportunity

to a single solution

Identify

appropriate

resources

Understand &

target value

Develop relationship

strategy & action

plan

Assess needs &

confirm technical

evaluation criteria

Architect

Define account

team partners &

jointly develop

customer interest

Deliver examples

& success stories

Scope opportunity

& define leverage

Understand

impact of

customer pain

&/or initiative

objectives

Identify sponsor

Focus on

relationship building

Refine solutions

using customer

assessments

Discover

Lead management

process integrates

team

Demonstrate

capability via

briefings & sales

materials

Identify pain &/or

key initiative

Identify areas of

common interest &

mutual relationships

Identify solutionsQualify

TeamStrategyUtilityRelationshipTechnology

Engage full ongoing

support team &

coverage model

Evaluate deal

trade-off & confirm

terms

Initiate project

management &

delivery processes

Confirm

customer & team

understanding of

business utility

Provide customer

analyst examples

Integrate customer

with support &

management team

Update solution

based on

evaluation

Close

Align team &

support flawless

execution of POC or

trial

Understand

potential barriers &

deliver complete

proposal

Engage references

Negotiate

Refine value

proposition for

competitive

differentiation

Complete project

justification

Engage relationship

strategy & action

plan. Focus

communications on

complete under-

standing of decision

criteria

Develop POC or

trialPropose

Gain consensus

from customer on

solution

Focus opportunity

to a single solution

Identify

appropriate

resources

Understand &

target value

Develop relationship

strategy & action

plan

Assess needs &

confirm technical

evaluation criteria

Architect

Define account

team partners &

jointly develop

customer interest

Deliver examples

& success stories

Scope opportunity

& define leverage

Understand

impact of

customer pain

&/or initiative

objectives

Identify sponsor

Focus on

relationship building

Refine solutions

using customer

assessments

Discover

Lead management

process integrates

team

Demonstrate

capability via

briefings & sales

materials

Identify pain &/or

key initiative

Identify areas of

common interest &

mutual relationships

Identify solutionsQualify

TeamStrategyUtilityRelationshipTechnology

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Organizations that implement this two-

dimensional concept in pipeline manage-

ment tend to view selling strategy as

multi-faceted. Alignment with customer

value is demonstrated via clarity in the fit

between the customers needs and the

providers capabilities. Selling occurs at

multiple levels within the customer, serv-

ing the needs of complex buying units.

The sales team and the customer are fully

integrated to maximize the utility of the

solution.

Conversely, organizations that implement

a more traditional single-dimensionalsales cycle, addressing technology in the

early sales cycle stages and formulating

teams during the later stages, tend to

miss the ability to leverage the opportu-

nity and may be exposed to surprises

during the buying process.

Study Participants Input

When presented with the all-wheel trac-

tion model, most participants agreed

that the application of this level of proc-

ess discipline would certainly and posi-tively impact their success. Participants

liked the direction that such a model and

approach would provide.

The participants generally commented

that the all-wheel traction model would

fit well with their larger opportunities and

more complex sales, but may be overly

complex for simple transactions. Some

simplification might be needed. Other

concerns included the lack of flexibility

implied by the rigid structure, and the

potential difficulty of integration with their

current approaches. One participant won-

dered, Is it ever really implemented that

way in the field? Conversely, several

commented that the senior reps do this

intuitively and codifying for the other

reps would be great.

Several participants indicated that a few

things were missing. These included the

integration of other processes, including

lead generation/marketing campaign

management, and account planning. A

few indicated that the process could be

enhanced with more structure and auto-

mation, similar to a stage/gate develop-

ment process and an automated ap-

proach to sales coaching.

Clearly, the raw model is not applicable

to every situation, selling approach, or

providers business model. Tailoring the

model to specific situations and integra-tion of the model with the appropriate

business processes is necessary.

Activation

In addition to presenting the all-wheel

traction model, we showed the partici-

pants an example of how it might be used

to visualize the status of key transactions

in a particular territory.

One participant noted, The thought proc-

ess works for complex saleswe are find-

ing over time that surprises are reduced.

When we do win/loss reviews, we are

able to drill down and find a particular

area where they [the reps] have skipped

an activity/step. Another noted, I see

great value to the dashboard...it lets you

walk through the discipline and see what

it is we are talking about, and we can also

see red flags easily.

The use of the dashboard has many

applications and is key to activating an

effective pipeline management process. Itcan help with root-cause analysis, under-

standing the reasons for a win or loss. It

also provides a clear basis for just-in-

time coaching.

Detailed Findings

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Envision yourself in a conversation with a

sales rep that has just delivered the be-

low chart. What do you want to talk to the

rep about?

Detailed Findings

Oppo

rtunity

1

Oppp

ortu

nity

2

Oppo

rtunity

3

Oppp

ortu

nity

4

Oppp

ortu

nity

5

Oppo

rtunity

6

QualifyTechnology Yes Yes Yes Yes Yes Yes

Relationship Yes Yes In Process Yes Yes In Process

Utility Yes Yes Yes Yes Yes In Process

Strategy Yes Yes Yes Yes Yes Yes

Team Yes Yes Yes Yes Yes In Process

DiscoverTechnology Yes Yes Yes Yes In Process In Process

Relationship Yes Yes In Process Yes Yes In Process

Utility Yes In Process In Process Yes In Process In Process

Strategy In Process In Process Yes In Process In Process In Process

Team Yes Yes Yes Yes Yes In Process

Architect /Al ignTechnology Yes In Process In Process Yes In Process In Process

Relationship Yes In Process In Process In Process Yes In Process

Utility Yes In Process In Process Yes In Process In Process

Strategy In Process In Process In Process Yes In Process In Process

Team Yes Yes In Pr oc es s Yes In Pr oces s No

ProposeTechnology In Process In Process In Process Yes In Process No

Relationship In Process In Process In Process Yes In Process No

Utility Yes In Process No Yes In Process NoStrategy In Process In Process In Process Yes In Process No

Team Yes Yes In Pr oc es s Yes In Pr oces s No

CloseTechnology Yes In Process Yes Yes Yes No

Relationship Yes In Process Yes Yes Yes No

Utility In Process In Process No Yes In Process No

Strategy In Process In Process No In Process In Process No

Team In Process In Process No Yes In Process No

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Conclusions Leaders Best Practices

State of the Art at the Top

About 40% of the participants organiza-tions had achieved a level of solid per-

formance in pipeline management. These

organizations had implemented pipeline

management approaches with sound and

optimized processes, rigorous manage-

ment discipline, quality technology solu-

tions, supportive culture, and engaged

senior management. They consistently

met forecasts, had already achieved a

high level of sales velocity, were able to

select opportunities effectively, and allo-

cate resources efficiently. Interestingly,most of these leaders had improvement

projects in place (the journey continues).

Leaders Best Practices

Leaders best practices demonstrate their

high level of sophistication. To put this in

perspective, one participant, new to his

position (and specifically put in place to

instill sales process optimization), noted,

That's high school stuff. We're in third

grade." Indeed, but perhaps the leaders,

representing both service and product

companies, are in grad school. Heres

what they said:

Recognition of the revenue pipelineas a business assetIn general, the leaders organization

recognized the business value of

their revenue pipelines. They exhib-

ited an excellent understanding of

how pipeline (and managing the pipe-

line better) impacts their business.

This understanding was shared

across (and up and down) the busi-

ness. In short, the pipeline repre-

sents the future of the company.

Recognition of pipeline informationas a business information assetNot only did the leaders exhibit an

understanding of the value of the

pipeline itself, their organizations

valued the information the pipeline

management system supplied, both

within sales and in other business

functions. As one participant put it,

Pipeline data is the data source

regarding sales. They used pipeline

data across the organization to as-

sess internal investments in product

development, marketing, and service

delivery/supply chain management.

Pipeline information was often

viewed as an important input to stra-

tegic decisions.

Pipeline management is part of man-agement rhythmIn the leaders companies, pipeline

management process and discipline

was simply a part of day-to-day op-

erations and decision-making. A cul-

ture that evidences the belief that

"this needs to be done to help us

understand and run the business

better" is in place. In fact, the leaders

have implemented cultural environ-

ments where pipeline management

has transcended the status of not

punitive nor optional and have

achieved an environment where the

activity is actually appreciated and

(dare we say?) enjoyed. Sales repre-

sentatives receive better coaching,

get help when needed, and attain

greater success. Management enjoys

better information. And most impor-

tantly, the business achieves in-

creased profitability and revenue

growth.

Recognition of the reve-nue pipeline as a businessasset

Recognition of pipelineinformation as a businessinformation asset

Pipeline management ispart of managementrhythm

Pipeline managementprocess is detailed, rigor-ous, and supported byeffective automation

Pipeline managementdrives tangible businessresults

Leaders Best Practices

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Conclusions Leader Best Practices

Pipeline management process isdetailed, rigorous, and supported byeffective automationLeaders generally had formal, disci-

plined, and rigorous pipeline man-

agement processes. These proc-

esses and the automation supporting

them were integrated into the sales

workflow and other business sys-

tems. Their processes and informa-

tion requirements were not burden-

some. They were not only business

as usual, but also facilitated opera-

tions.

Pipeline management drives tangiblebusiness resultsNot only do the leaders discuss pipe-

line management in terms of commu-

nications, coaching, intervention,

control, and information, they discuss

real business results. They have ex-

perienced improved profits, grown

revenue, penetrated accounts more

effectively, improved alignment with

customers, and stockholder confi-dence. They have used their compe-

tence in internal communications

and process to create value for them-

selves, their customers, their employ-

ees, and their stockholders.

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Study Demographics

Approximately two-thirds of the partici-

pants were from sales management roles,

ranging from corporate Chief Sales Officer

to Sales Line Management. The remain-

ing third were general management ex-

ecutives, most of whom had sales jobs

prior to their current assignment, and

marketing executives with close linkages

to their sales organizations.

Almost all of the participants were quota-

bearing, or had revenue and profit busi-

ness objectives.

All had some degree of experience and a

good degree of visibility to their organiza-

tions pipeline management processes

and practices.

The revenue associated with the partici-

pants span of control ranged from a high

of over $5 billion to a low of under $250

million. We have denoted this metric as

relevant revenue in the chart.

The number of sales reps relevant to the

participants span of control ranged from

a high of over 500 direct representatives

to under 25.

The participants came from a diverse

group of industries with a high concentra-tion of information technology and profes-

sional services companies.

Participant RoleDivision/Unit Sales

Executive28%

High-Level CSO14%

Key AccountExecutive

14%

GeneralManagementExecutive24%

Sales LineManagement10%

High-Level MarketingExecutive

10%

< $250M19%

Relevant Revenue$250 - $499M

33%

$5B

5% $1 - $4.99B33%

$500 - $999M10%

Direct Reps (Relevant Count)25 - 4928%

50 - 9929%

100 - 24914%

5005%

-25-


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About Critical Path StrategiesCritical Path Strategies helps clients im-

prove the effectiveness of their sales

organization. Our portfolio of services

addresses the strategic, organizational,

and relationship issues that impact sell-

ing performance. Our powerful processes

enable clients to transform their sales

culture, enhance their competitive posi-

tion, and accomplish strategic business

initiatives. Our clientsemerging compa-

nies and members of the Fortune 500

aliketypically measure 100 to 500 times

their CPS investment in revenue growth.

Filigree Consulting administered this

study and performed the analysis of the

results. Filigree provides custom re-

search, project management, and re-

search consulting for client projects as

part of its focus on information-intensive

industries. Filigree Consulting works with

clients to help them align with key con-

stituencies and build competitive advan-

tage through fact-based decision-making.

About Filigree Consulting

-26-


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CRITICAL PATHWAYS

In an unfortunate era of corporate misbehavior, investors, stockholders, and customers carefully scrutinize t

financial health of an organization and assess the risk factors of owning equity and doing business with a com

pany that expounds their value and strength, but could be defunct tomorrow. How can credibility be assured

Companies operate in a world that communicates current business performance in terms of key ratios: EB

DSO; COGS; E/R; Debt to Equity. In evaluating companies, we study the balance sheet, the income sta

ment, 10Ks, 8Ks, and analyst reports. In analyzing a companys anticipated performance, we trust tha

combination of corporate ethics, internal governance, and reporting regulations will permit an outsider to atta

a reasonable picture of stability. The street rewards growth and predictability intuitively, and in the simple

terms, the true future value of any company is based upon the size, quality, and predictability of its revenu

pipeline. While forecasting accuracy is essential when managing quarter-to-quarter shareholder expectatio

analysis of the revenue/opportunity pipeline can provide the clearest view of marketplace strength and co

petitive trends. The fact is, pipeline management is not a well-honed practice in many firms. One of our clien

mused If we managed our expenses the way we manage our pipeline, we would be out of control and prob

bly out of business.

Amazingly, in our decades of working with the largest and most prestigious companies in business today,

often find that the executive leadership takes little interest in the purposeful assessment of the revenue pip

line. They miss the opportunity to address potential revenue gaps until deals have stalled in the pipeline a

the forecast is jeopardized. Fundamentally, we believe that the pipeline of opportunities must be managed w

the same rigor as every other asset of the enterprise. CPS believes that a managed pipeline is one that

purposeful and is built on a principle of TRUST.

The responsibility of predicting sales and delivering revenue with

expectations is nothing new to sales executives. Developing forecast

tracking key deals, and scrutinizing win ratios have always been a

integral part in conducting trade. And while the processes o

generating opportunities and delivering revenue have represented th

fundamental raison detre for selling organizations, the environme

today has become more complicated. Publicly traded companies,

providing financial transparency as mandated by Sarbanes-Oxley, fin

that corporate governance is a critical issue.

The CPS theme of

"TRUST is a recog-

nized ingredient for

success in building a

sustainable pipeline

for growth.

Trust Your Pipeline

by Mike Morto

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CRITICAL PATHWAYS

In organizations where a trusted pipeline exists, selling is viewed as a function that orchestrates the actio

associated with multi-faceted strategy. Progress of an opportunity is measured in how well weve demo

strated a fit between the customers needs and our capabilities. We look at the process and approach to re

tionship-building and how we are creating value from the utility of the fit. We view the nature of the strate

and the teamwork required to activate the strategy. Simply put, we call this TRUST. In this use of TRUS

consider that pipeline management needs are similar to an all-wheel drive vehicle. All facets of the sales pro

ess need to be engaged at some level from the beginning of the process through to close.

Our experience has shown us that when a company can trust its pipeline, the following tangible outcom

occur:

Sales opportunities proceed through the selling stages with a predictable velocity; opportunit

that are stalled in a stage are identified early and proactively addressed.

The teams win rate exceeds the average in its industry.

When an opportunity is lost, the team knows who won and why. The organization never misses a forecast; there are no end-of-financial period surprises.

When negotiations occur in the final selling stages, the organizations negotiating position i

proves; margins are held.

The bottom-line: A pipeline built on TRUST provides a reliable measurement for a companys future succes

Technology The Technology fit of your offering to the customers environment

Relationship Key Relationships that must be successfully engaged and nurtured

Utility The Utility and subsequent value of your offering that enables yourclient to implement the solution to meet their goals and addresstheir pains

Strategy The Strategy and tactics the selling team must develop and executeto create client recognized value and the urgency to take action

Team Enrolling the Team (your companys team and its Partners) toexecute the strategy and establishing accountability to action andachievement

ABOUT CPS. Critical Path Strategies

helps clients improve the effectiveness

of their sales organization. Our portfolio

of services addresses the strategic,

organizational, and relationship issues

that impact selling performance. Our

powerful processes enable clients to

transform their sales culture, enhance

their competitive position, and accom-

plish strategic business initiatives. Our

clientsemerging companies and mem-

bers of the Fortune 500 aliketypically

measure 100 to 500 times their CPS

investment in revenue growth.

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